Gupta Gets Quick Appeal, To Remain Free

Dec 7 2012 | 10:20am ET

Rajat Gupta, sentenced to two years in prison for passing confidential corporate tips to hedge fund manager Raj Rajaratnam, won't be going to jail until at least April.

The former McKinsey & Co. chief, convicted in June of passing tips gleaned during his service on the boards of directors at Goldman Sachs and Procter & Gamble, had his appeal expedited this week by a federal appeals court. Gupta's lawyers could be making their case before the U.S. Second Circuit Court of Appeals in Manhattan as soon as April 1.

Earlier this week, Gupta learned that he'd remain free on bail pending that appeal. Gupta was to report to prison on Jan. 8.

Briefs in the appeal are due on March 29.

A jury found Gupta guilty of three counts of securities fraud and one count of conspiracy. Prosecutors said he told Rajaratnam, a longtime friend and the head of Galleon Group, about a $5 billion investment by Berkshire Hathaway in Goldman in 2008, among other nuggets. Rajaratnam is currently serving 11 years in prison; his non-expedited appeal was heard by a Second Circuit panel in October.

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